- EOS crypto price has formed an inverted cup and handle pattern.
- It has also formed a double-top pattern at $1.2830.
- It pulled back in line with the performance of other coins.
EOS price is loitering near the lowest level since November last year as concerns about the crypto industry continued. The coin was trading at $0.8770, a few points above this week’s low of $0.8252. In all, EOS has plunged by over 35% from the highest point this year.
Binance and Coinbase lawsuits
The biggest driver of the EOS price is the recent lawsuits by Binance and Coinbase, two of the biggest companies in the industry. On Monday, SEC launched a major lawsuit against Binance. It accused the company of offering its services in the US and providing unregulated products in the country.
And on Tuesday, as we wrote here, the SEC sued Coinbase, the biggest company in the US for offering stacking products in the country. The SEC believes that stacking is a financial security, which means that it should be regulated.
Binance and Coinbase have all rejected these claims and vowed to fight them in court. In a statement, Brian Armstrong, the CEO of Coinbase, faulted the SEC for the lawsuit. He claimed that the SEC had known about its stacking products for years. The SEC had even assessed the company’s business when it went public.
Read more: How to buy EOS.
Therefore, EOS price drifted upwards on Wednesday as investors bought the dip. A closer look shows that most coins were also in the green. Bitcoin price jumped to $27,000, where it was before the Binance lawsuit. Other top cryptocurrencies like Stacks, Terra Classic, Pepe, and Kava have all jumped.
This rally could be a dead cat bounce. In price action analysis, this is a situation where an asset bounces back after going through a freefall. The jump is usually temporary and is followed by another retreat.
EOS price prediction
The daily chart shows that the EOS coin has been in a bearish trend in the past few months. This decline happened after the coin formed a double-top pattern at $1.2830. Its neckline was at $0.9637. In price action analysis, this pattern is usually a bearish sign.
EOS has also formed an inverted cup and handle pattern, which is usually a bearish signal. It is now forming the handle section of this pattern. It is also slightly below the 25-day and 50-day moving averages.
Therefore, I suspect that the coin will have a bearish breakout in the coming days. This view will be confirmed if the price moves below the key support level at $0.7700.
